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KGALEMA R196.00 (VAT INCL.)

MOTLANTHE CHAMPION OF TRANSFORMATION

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MENLYN PARK SHOPPING CENTRE

CANAL WALK SHOPPING CENTRE

PRETORIA • SHOP G67 • TEL: 012 348 4614

CAPE TOWN • SHOP 655 • TEL: 021 555 3696

CarducciMen CarducciWomen  www. carducci.co.za CarducciSA 

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CONTENTS

114 TOWNSHIP ECONOMY

REGULAR

120 TRANSFORMATION IN SPORT

66 DIGGING DEEP FOR VALUE

6 EDITOR’S LETTER 8 FEATURED ORGANISATIONS 140 TOP EMPOWERMENT AWARDS

ARTICLES

152 SOUTH AFRICA’S TOP EMPOWERED COMPANIES

38 BLACK EMPOWERED EQUITY FUNDS

SPECIAL FEATURE

102 YOUNG MOVERS & SHAKERS

28 TAKING THE TEMPERATURE OF TRANSFORMATION 10 FOREWORD BY TASHMIA ISMAIL-SAVILLE 44 FOURTH INDUSTRIAL REVOLUTION IN AFRICA

50 TRAINING & SKILLS DEVELOPMENT

78 THE IMPORTANCE OF ENTERPRISE SUPPLIER DEVELOPMENT

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94 TOP 10 BEE STRATEGIES

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CREDITS, CONTENTS AND CONTRIBUTORS

COVER STORY 14 KGALEMA MOTLANTHE Former President Kgalema Motlanthe was recently awarded the Top Empowerment Lifetime Achiever Award and says that he believes this accolade should ser ve to inspire others to devote their lives to the transformation of this countr y.

CR EDITS CEO R A L F FL E TC H E R AS S O C I AT E P U B L I S H E R LEE-ANN BRUCE HEAD OF BRAND J U S T I N DA N I E L S K E Y AC C O U N T M A N AG E R S LU N GA Z I W E L E P H Y L L I S WASA R I R E V U FLO R A H N E M AO R A N I R E S E A R C H M A N AG E R SA N D R A B O C K

INTERVIEW

RESEARCHER TA R RY N JACO B S

22 ZODWA NTULI H e a d o f t h e B - B B E E C o m m i s s i o n , s p e a ks a b o u t t h e c h a l l e n g e s of making companies comply with t ra n s fo r m a t i o n l e g i s l a t i o n.

TO P C O STU D I O P R O D U C T I O N D I R E C TO R VA N FL E TC H E R G R O U P E D I TO R FI O N A WA K E L I N

LIFSTYLE

AS S I S TA N T E D I TO R N I CO L E F O R R ES T

130 ART AND FASHION

F E AT U R E S E D I TO R ELSKE JOUBERT

134 CAR REVIEW

DESIGNERS M E L I S SA C LO E T E C H R I S T I N E S I L J EU R

CONTRIBUTORS HON. NALEDI PANDOR

RYLAND FISHER

Naledi Pandor was

Ryland Fisher has more than

appointed as the Minister

35 years of experience in the

of International Relations

media industry as an editor,

and Cooperation on

journalist, columnist, author,

30 June 2019.

senior manager and executive.

ANTON PRETORIUS

DONNA RACHELSON

Anton Pretorius is a

Donna is a driven entrepreneur

seasoned journalist,

with a passion for helping

currently working for

women, entrepreneurs and

Wineland Magazine.

corporate go-getters make

HEAD OF TRAFFIC & DISTRIBUTION DA N I E L B O U W E R PRINTERS CT P P R I N T E R S C OV E R P H OTO G R A P H E R AU B R E Y J O N S S O N PROOFREADER OLIVIA MAIN I M AG E S i S TO C K

their mark.

DISCLAIMER

HEAD OFFICE

All rights reser ved. No par t of this publication may be reproduced, stored in a retrieval

TO P M E D I A & C O M M U N I CAT I O N S (P t y ) Lt d

system or transmit ted, in any form or by any means, electronic mechanical, photocopying,

T/A To p c o M e d i a

r e c o r d i n g o r o t h e r w i s e , w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f To p M e d i a & C o m m u n i c a t i o n s

2 n d F l o o r, E l ka y H o u s e 18 6 L o o p S t re et, C a p e Tow n , 8 0 01

( P t y) L t d T/A To p c o M e d i a . R e g . N o. 2 011/10 5 6 5 5/07. W h i l e e v e r y c a r e h a s b e e n t a ke n w h e n c o m p i l i n g t h i s publication, the publishers, editor and contributors accept no responsibilit y for any c o n s e q u e n c e s a r i s i n g f r o m a n y e r r o r s o r e m i s s i o n s . I S B N : 978 0 62 0 5 0710 3

1 9 TH E D I T I O N

Contents Page-Contributors Edits.indd 3

Te l : +27 8 6 0 0 0 9 59 0 | F a x : +21 4237576 E m a i l : i n fo @ to p c o.c o. za We b s i t e: w w w.to p c o.c o. za

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Ed ito r’s L etter

thanks in the upfront section of the first edition, he identified the purpose of the magazine – which still holds true today: Impumelelo has been designed to identify and recognise excellence among black companies and entrepreneurs in South Africa. This bumper 19th edition continues to provide a platform for our country’s most empowered organisations and individuals to share their inspirational stories – and for your reading enjoyment and edification includes articles such as: • Top 10 BEE strategies to improve your rating • Skills development and training for transformation and empowerment by Honourable Minister Naledi Pandor • Youth empowerment: Young movers and shakers, including the Youth Employment Scheme initiative • Township economies • Transformation in sport • Technology and its impact on how we work • Top black- empowered equity funds. 2019 marks a quarter century of democracy and while government policies and programmes such as B-BBEE, the Black Industrialist Programme, the Preferential Procurement Transformation and empowerment are central to

Policy Framework Act, the Employment Equity Act, and the

sustainable long-term economic growth and stability in

Youth Employment Service initiative have worked together with

South Africa, ensuring we vanquish the triple-headed

committed members of the private sector to ensure we tackle

hydra of poverty, inequality and unemployment. For

our Gini coefficient head-on, the road is long and much still

19 years Impumelelo: Top Empowerment has tracked

needs to be done.

the changes, possibilities, growth, challenges and successes of our journey of transformation.

A publication of this nature is the culmination of months of teamwork. Thank you Elske Joubert, Nicole Forrest, Melissa

In the year 2000, following a discussion with then-MP

Cloete and Daniel Bouwer. We hope you enjoy the read.

Cyril Ramaphosa on the importance of a publication to champion B-BBEE, the first volume of Impumelelo was published, focusing on South Africa’s Top 300 blackempowered companies. Richard Fletcher, the founder of Topco Media, was still at the helm, and in his letter of

EDITOR’S TOP READS:

28 TAKING THE TEMPERATURE OF TRANSFORMATION

114 TOWNSHIP ECONOMY 6

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120 TRANSFORMATION IN SPORT

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Embracing integrated strategic, risk, performance and sustainability governance in a transparent manner Sasria is an authorised financial services provider (FSP-number: 39117)

Good governance is at the centre of everything we do. As a result, Sasria SOC Ltd was recognised by the Chartered Secretaries of Southern Africa during its Integrated Reporting Awards 2018 for the third year in a row. Sasria is honoured to have been awarded the Merit Award in the State-Owned Company category at these awards. Sasria offers short-term insurance cover against strikes, riots, terrorism, civil commotion and public disorder to corporate and commercial customers as well as individual policyholders. For more information, visit www.sasria.co.za

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FEATURED ORGANISATIONS A

O

AE T Africa

98

Open Trade Training Centre

AV Light S te el

148

P

B B oniswa Corporate Solutions B oon Africa

Palabora M ining Company 113 65

Paragon Archite cts SA PM Skills H ouse

D eb ar C eramics

75

SA H om e Loans

D y rex

90

SA International

E Ekurhul eni Ar tisan Skills

Inkulul eko Yesiz we Association Invincib l e Valves Ite c Tiyend e

54

20 70 136 86 9

S iyakha Consulting

10 5 7

Skills D evelopm ent

D

60

Soweto O utdoor Adventures

118

S PAR Group

124

T Tour vest Travel S er vic es

W

112

w

V VNA Consulting

M

26 12

Corporation

Inkomati - Usuthu Catchm ent M anag em ent Ag ency

110

M aritim e Institute Sasria 56

I 20/20 Insight

42

S

D

and Training

52

M asana Petrol eum Solutions

83

Y

M othe o T VE T Coll e g e

48

Yourself M anag em ent

D

74

y

b

s

10 0

N

W

N aidu Consulting

27

N ER SA

69

N PI G overnanc e Consulting

36

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Fo rewo rd

By Dr Tashmia Ismail - Saville

Youth who were previously unemployed can now become a powerful economic force.

I n a ny c o u nt r y i n t h e wo r l d, t h a t g o a l wo u l d b e a m a s s i ve u n d e r ta k i n g. I n S o u t h Af r i c a, t h e p ro b l e m ta ke s o n a s t i c k i n e s s a n d c o m p l ex i t y g i ve n t h e h i s to r i c u n d e r i nve s t m e nt a n d n e g l e ct fa c e d by c o m m u n i t i e s w i t h h i g h u n e m p l oy m e nt ra te s. O u r c o u nt r y b a t t l e s t h e h i g h e s t yo u t h u n e m p l oy m e nt s ta t i s t i c i n t h e wo r l d, w i t h m o re t h a n s i x m i l l i o n p e o p l e b et we e n t h e a g e s o f 18 a n d 3 4 exc l u d e d f ro m t h e e c o n o my a s t h ey s t r u g g l e to f i n d a jo b. T h i s re f l e ct s n ot o n l y a s t r u g g l i n g e c o n o my b u t a d e e p so c i a l sc a r r i n g a n d t h e re a l a n d l i n g e r i n g e f fe ct s o f a p a r t h e i d. I n o u r c o u nt r y, o n e m i l l i o n n ew jo b o p p o r t u n i t i e s i s a c a l l fo r h o p e. I t ’s a c a l l fo r d ra s t i c c h a n g e i n a p p ro a c h e s to b u s i n e s s a n d c o l l a b o ra t i o n towa rd s i m p a ct o n a n u n p re c e d e nte d sc a l e. S o, w h e n P re s i d e nt C y r i l R a m a p h o s a i nt ro d u c e d t h e Yo u t h E m p l oy m e nt S e r v i c e ( Y ES) a n d ta s ke d i t w i t h t h i s a m b i t i o u s m a n d a te, h e wa s n ot ju s t s et t i n g a nu m e r i c g o a l. H e wa s c a l l i n g fo r a n a t i o n - w i d e m i n d s et s h i f t towa rd s i n c l u s i ve g row t h, b e c a u s e t h a t ’s w h a t i t w i l l ta ke to a c h i eve t h i s.

D r Ta s h m i a I s m a i l - S a v i l l e i s t h e C EO o f Yo u t h Em p l oy m e nt S e r v i c e i n S o u t h Af r i c a.

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To g et h e r w i t h p a r t n e r s i n t h e p r i va te s e cto r a n d N G O s p a c e, t h e Y ES te a m h a s s p e nt t h e p a s t ye a r a ct i ve l y b u i l d i n g n ew wa y s to c re a te n ew jo b s i n n ew p l a c e s. B y l eve ra g i n g

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FOREWORD

“Now is the time to join us. We say: if not us, then who? If not now, then when?”

a n i nte g ra l p a r t o f t h e so l u t i o n: we n e e d t h e m to h e l p p rov i d e p l a c e m e nt s fo r yo u t h wo r k o p p o r t u n i t i e s, te c h n o l o g y a n d k n ow l e d g e su p p o r t a n d f u n d i n g to g row t h e i nf ra s t r u ct u re to su p p o r t t h e p ro g ra m m e. I n o n l y t h re e m o nt h s o f Y ES ’s o f f i c i a l o p e ra t i o n, m o re t h a n 25 0 c o m p a n i e s h a ve a l re a d y jo i n e d t h e m ove m e nt to h e l p c h a n g e l i ve s, o n e ye a r a t a t i m e. T h ro u g h t h e s e c o m p a n i e s, we’ve a l re a d y fo u n d p l a c e m e nt s fo r 4 6 0 0 yo u t h i nto h i g h q u a l i t y o n e - ye a r wo r k ex p e r i e n c e s w i t h ove r 1 5 0 0 a l re a d y p l a c e d i n t h e m a r ket. We’ve e m b a r ke d o n s i g n i f i c a nt p a r t n e r s h i p s w i t h i n s p i r i n g p a r t n e r s t h a t a re p rov i d i n g eve r y t h i n g f ro m

i n n ova t i ve c h a n n e l s, te c h n o l o g y, n ew c o l l a b o ra t i o n s,

re s e a rc h a n d g u i d a n c e a ro u n d b e s t p ra ct i c e, to

u n l o c k i n g jo b - r i c h va l u e c h a i n s i n n e g l e cte d b u t

ex p o su re to jo b m a ke r s fo r o u r yo u t h, to n ew d i g i ta l

h i g h - p ote nt i a l p a r t s o f t h e c o u nt r y, a n d by i nv i t i n g a l l

p h o n e - b a s e d g a m i n g to o l s t h a t h e l p u s i d e nt i f y

c o m p a n i e s a n d i n d i v i d u a l s to jo i n u s o n t h i s jo u r n ey,

s t re n g t h s, we a k n e s s e s a n d g o o d jo b f i t s fo r o u r

we’re s ta r t i n g to m a ke i n ro a d s. A n d a s we to g et h e r

yo u t h, w i t h o u t re q u i r i n g fo r m a l q u a l i f i c a t i o n s o r

w i t h a h o s t o f p a r t n e r s b r i n g o n l i n e n ew S M M Es i n

a t ra d i t i o n a l i nte r v i ew.

f u t u re va l u e c h a i n s su c h a s g re e n e n e rg y, u r b a n fa r m i n g w i t h hyd ro p o n i c s te c h n o l o g y a n d ot h e r fo u r t h

At t h e s a m e t i m e, w i t h t h e h e l p o f p a r t n e r s,

i n d u s t r i a l 21s t c e nt u r y o p p o r t u n i t y s p a c e s,

we’re e q u i p p i n g o u r Y ES yo u t h w i t h c u t t i n g - e d g e

t h e p o s s i b i l i t i e s s ta r t to b e c o m e e n d l e s s.

s m a r t p h o n e s t h a t h a ve 27 wo r k- re a d i n e s s t ra i n i n g m o d u l e s, a sy s te m o f nu r t u re a n d su p p o r t fo r yo u t h

Y ES wo r ks a g a i n s t a b a c kd ro p o f su p p o r t i ve p o l i cy

a s s i s t i n g i n wo r k p l a c e b e h a v i o u r, b u i l d i n g g row t h

t h a t wa s evo l ve d i n a u n i q u e p a r t n e r s h i p b et we e n

m i n d s et s a n d c o nf i d e n c e, a n d i m p rov i n g t h e q u a l i t y

key ro l e - p l a ye r s. T h e i d e a fo r Y ES c a m e f ro m t h e

o f t h e p l a c e m e nt fo r t h e yo u t h a n d e m p l oye r.

p r i va te s e cto r, wa s m a n d a te d by g ove r n m e nt, a n d n ow p o l i cy m a ke r s h a ve evo l ve d p o l i cy to su p p o r t a n d

T h e re’s o n e c o m m o n t h e m e r u n n i n g t h ro u g h e a c h

i n c e nt i v i s e i t w i t h i n t h e p r i va te s e cto r. Y ES l e g i s l a t i o n,

o f t h e su c c e s s e s we’ve e njoye d so fa r: c o l l a b o ra t i o n.

p u b l i s h e d t h i s ye a r by t h e d t i, a l i g n s w i t h t h e B - B B EE

C o n s t r u ct i ve a n d m e a n i n g f u l p a r t n e r s h i p s h e l p

C o d e s o f G o o d P ra ct i c e: C o m p a n i e s t h a t i m p l e m e nt

u s e d g e c l o s e r to t h e l o f t y g o a l o f o n e m i l l i o n

Y ES a n d re a c h p re sc r i b e d ta rg et s c a n m ove u p a n

wo r k o p p o r t u n i t i e s.

e nt i re l eve l o n t h e i r B - B B EE sc o re c a rd. S o, n ot o n l y i s t h e re a so c i a l i m p e ra t i ve fo r d r i v i n g d ow n yo u t h

T h a t nu m b e r w i l l b e s i m p l y i m p o s s i b l e to a c h i eve

u n e m p l oy m e nt i n S o u t h Af r i c a, t h e re’s n ow a l so a n

w i t h o u t t h e m i n d s o f t h e c o l l e ct i ve. B u t to g et h e r,

i m m e d i a te b u s i n e s s i n c e nt i ve to d o so.

wo r k i n g i n n ew wa y s a n d su p p o r te d by n ew l y ex p a n d e d p o l i cy, we c a n o p e n u p yo u t h p a t hwa y s

A s Y ES e nte r s a p h a s e o f a c c e l e ra te d g row t h, we c a l l

i nto e c o n o m i c i nte g ra t i o n. T h a t c a n c h a n g e t h e

fo r t h e c o l l a b o ra t i o n o f c o r p o ra te p a r t n e r s. T h ey ’re

f u t u re o f o u r e c o n o my.

1 9 TH E D I T I O N

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By Fiona Wakelin

F o r m e r P re s i d e nt Kg a l e m a M ot l a nt h e wa s re c e nt l y a wa rd e d t h e To p E m p ow e r m e nt L i fet i m e Ac h i e ve r Aw a rd a n d s a y s t h a t h e b e l i e ve s t h i s a c c o l a d e s h o u l d s e r ve to i n s p i re ot h e r s to d e vote t h e i r l i ve s to t h e t ra n s fo r m a t i o n o f t h i s c o u nt r y.

C o n g r a t u l a t i o n s o n w i n n i n g t h e To p E m p owe r m e nt L i fet i m e Ac h i eve r Awa r d. W h a t wa s t h e s i g n i f i c a n c e, fo r yo u , o f w i n n i n g t h i s a wa r d? T h e To p Em p owe r m e nt Awa rd s a n d C o nfe re n c e s h i n e a l i g ht o n t h e h i s to r y a n d a c c o m p l i s h m e nt s o f e c o n o m i c t ra n s fo r m a t i o n i n S o u t h Af r i c a a n d a s k u s to re m e m b e r a n d re c o g n i s e t h e l i n e a g e o f b l a c k c i t i ze n s a n d f re e d o m f i g hte r s w h o s t r u g g l e d fo r a n d c o nt r i b u te d to t h e d eve l o p m e nt o f e c o n o m i c e m p owe r m e nt w i t h i n o u r d e m o c ra cy.

“TWENTY-FIVE YEARS IS THE SILVER JUBILEE OF SOUTH AFRICA’S DEMOCRACY, A MILESTONE TO BE CELEBRATED”

I t re m a i n s i m p o r ta nt fo r u s to re f l e ct o n t h e jo u r n ey o f e q u a l e c o n o m i c p a r t i c i p a t i o n ove r t h e l a s t t we nt y - f i ve ye a r s: c o l l e ct i ve l y we n e e d to i d e nt i f y t h e c h a l l e n g e s t h a t c o nt i nu e to re s t r i ct t h e e f fe ct i ve a n d su s ta i n a b l e

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KGALEMA MOTLANTHE INTERVIEW

“IT IS IMPORTANT FOR US TO REFLECT ON AND ANALYSE OUR JOURNEY OF TRANSFORMATION” i m p l e m e nta t i o n o f i n c l u s i ve g row t h a n d e q u i ta b l e

f i r s t s e cto r to a d o pt a c o m p re h e n s i ve B EE sc o re c a rd

d i s t r i b u t i o n o f we a l t h. We s t i l l h a ve a ve r y l o n g wa y to

fo r t h e i n d u s t r y. T h i s i n i t i a t i ve by t h e m i n i n g i n d u s t r y

g o to a c h i eve t h e ove ra rc h i n g g o a l s o f S o u t h Af r i c a’s

p a ve d t h e wa y fo r ot h e r s e cto r s to f u r t h e r i g n i te

N a t i o n a l D eve l o p m e nt P l a n − a n d p l a t fo r m s su c h a s

t ra n s fo r m a t i ve m e a su re s a n d re su l te d i n fa r- re a c h i n g

To p Em p owe r m e nt o f fe r s t h e p r i va te s e cto r, p u b l i c

d eve l o p m e nt i n t h e w i d e r p r i va te s e cto r.

s e cto r, a n d c i v i l so c i et y i m p o r ta nt o p p o r t u n i t i e s to m a p o u t t h e f u t u re a n d d r i ve t h e a g e n d a o f

I d e d i c a te t h i s a wa rd to t h o s e m i n ewo r ke r s w h o s t i l l

t ra n s fo r m a t i o n t h ro u g h c o nt i nu e d a p p l i c a t i o n a n d

c o nt i nu e to p ro d u c e we a l t h f ro m d e e p d ow n i n t h e

d i a l o g u e exc h a n g e s.

b owe l s o f t h e S o u t h Af r i c a n re e f, b u t w h o s t i l l h a ve to s t r u g g l e fo r t h e i m p rove m e nt o f wo r k i n g c o n d i t i o n s

Ch a m p i o n i n g e c o n o m i c e m p owe r m e nt i n S o u t h

a n d wa g e s. T h i s a wa rd s h o u l d s e r ve to i n s p i re

Af r i c a i s s i g n i f i c a nt i n i t s s t re n g t h to c o nt r i b u te

ot h e r s to d evote t h e i r l i ve s to t h e t ra n s fo r m a t i o n

towa rd s re a l i s i n g t h e m a c ro v i s i o n o f i n c l u s i ve g row t h:

o f t h i s c o u nt r y.

ta c k l i n g t h e w i d e s p re a d c o n c e r n a b o u t t h e sc a l e a n d c o n s e q u e n c e s o f i n e q u a l i t y; a n d a d d re s s i n g

P l e a s e s p e a k a b o u t t h e j o u r n ey o f t r a n s fo r m a t i o n

t h e fa i l u re o f e c o n o m i c g row t h to t r i c k l e d ow n to

i n S o u t h A f r i c a ove r t h e l a s t 2 5 ye a r s . W h a t we r e

t h e p o o re s t.

t h e m aj o r m i l e s to n e s i n te r m s o f v i c to r i e s a n d c h a l l e n g e s?

B u s i n e s s, g ove r n m e nt, c i v i l so c i et y, p o l i cy m a ke r s a n d t h e w i d e r p u b l i c s h o u l d c o nt i nu e q u e s t i o n i n g h ow

T h e d e m o c ra t i c d i s p e n s a t i o n m e a nt t h a t fo r t h e f i r s t

we c a n e n su re t h a t t h e b e n e f i t s o f g row t h a re m o re

t i m e t h e d i s e nf ra n c h i s e d s e ct i o n o f t h e p o p u l a t i o n

e q u i ta b l y a n d w i d e l y s h a re d.

wa s n ow i n c l u d e d. We n ow h a d u n i ve r s a l su f f ra g e a n d c o u l d wo r k o n t h e c h a l l e n g i n g a n d o n g o i n g jo u r n ey o f

Founded upon social, moral and economic imperatives,

b u i l d i n g a u n i te d, d e m o c ra t i c, n o n - ra c i a l, n o n - s ex i s t

the genesis of black economic empowerment was largely

a n d p ro s p e ro u s S o u t h Af r i c a o f o u r d re a m s.

strengthened in the mining industr y in the mid -1990s. Mining was identified as a priorit y for black economic

Twe nt y - f i ve ye a r s i s t h e s i l ve r ju b i l e e o f S o u t h Af r i c a’s

empowerment as it was and still is a key contributor to

d e m o c ra cy, a m i l e s to n e to b e c e l e b ra te d, h oweve r,

South Africa’s economy.

we m u s t c o nt i nu e s t r i v i n g to re a c h fo r a d e m o c ra cy w i t h a g ove r n m e nt o f t h e p e o p l e, by t h e p e o p l e, a n d

G e n e ra t i n g a n ex te n s i ve i m p a ct i n a l l s e cto r s ove r

a c c o u nta b l e to t h e p e o p l e.

t h e p a s t 25 ye a r s, B - B B EE i s re c o g n i s e d a s h a v i n g h a d t h e m o s t p ro fo u n d i m p a ct o n t h e m i n i n g s e cto r

T h e p e o p l e a re c e nt ra l i n a ny d e m o c ra cy. Pe o p l e

a s t h e m i n i n g i n d u s t r y wa s o n e o f t h e f i r s t s e cto r s to

s h o u l d n ot b e l e f t o u t, m a rg i n a l i s e d o r u n h e a rd.

f i n a l i s e t h e d ra f t i n g , a d o pt i o n a n d i m p l e m e nta t i o n o f

Pe o p l e d o n ot o n l y h a ve c o n c e r n s, c o m p l a i nt s

B EE l e g i s l a t i o n. T h e M i n i n g Ch a r te r su b s e q u e nt l y d rew

a n d re q u e s t s, t h ey a l so h a ve su g g e s t i o n s. We m u s t

f ro m t h i s l e g i s l a t i o n a n d t h e m i n i n g s e cto r b e c a m e t h e

re c o g n i s e t h e we a k n e s s e s ove r t h e p a s t ye a r s a s

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SOUTH AFRICA’S TRANSFORMATION s m a l l s te p s towa rd s s t re n g t h e n i n g o u r d e m o c ra cy. I t i s

b et we en the various pe oples of South Africa, while

i m p o r ta nt fo r u s to re f l e ct o n a n d a n a l y s e o u r jo u r n ey

advocating for human rights and democracy.

o f t ra n s fo r m a t i o n a n d l e a r n t h e l e s so n s n e e d e d to i m p rove a n d a d va n c e d e m o c ra cy i n S o u t h Af r i c a.

We are acutely aware of the ef fects of the low - grow th economy which South Africa has endured over the last

The National Development Plan (NDP) calls for a capable

decade, where the poor get poorer and government

state. We need to create and strengthen the state so

systems fail.

that it preser ves institutional memor y and capabilities by placing the authorit y to select and appoint senior

This goes against the fundamental principles of our

managers, i.e. Directors General in the Public Ser vice

Constitution, which promises to “improve the qualit y of

Commission, and to appoint them on a permanent basis

life of all citizens and free the potential of each person”.

as opposed to the current contract system. I n re s p o n s e to t h i s, o n e o f o u r F o u n d a t i o n’s i n n ova t i ve “C o h e s i o n , c o l l a b o r a t i o n a n d i n n ova t i o n t h r o u g h

p ro g ra m m e s i n c l u d e t h e D ra ke n s b e rg I n c l u s i ve G row t h

d i a l o g u e a m o n g e q u a l s ”. P l e a s e te l l u s a b o u t t h e

F o r u m: a g a t h e r i n g o f t h o u g ht l e a d e r s to g e n e ra te

Kg a l e m a M ot l a nt h e F o u n d a t i o n .

d i a l o g u e a n d exc h a n g e, d eve l o p a ct i o n p l a n s a n d b u i l d a g re e m e nt i n m a p p i n g o u t t h e wa y fo r wa rd to

O u r m i s s i o n i s to p ro m ote, fo s te r a n d e n a b l e ra t i o n a l

a c h i eve t h e ove ra rc h i n g g o a l s o f t h e N D P.

a n d i n c l u s i ve d i sc o u r s e to u n l o c k c re a t i ve so l u t i o n s to b re a k d e a d l o c k , a n d p rov i d e p l a t fo r m s to b o o s t

T h e F o r u m c o n s i d e r s t h e n e e d s a n d vo i c e s o f a l l

e d u c a t i o n a n d yo u t h d eve l o p m e nt.

p a r t i e s i nvo l ve d , i n c l u d i n g c o m m u n i t i e s , t h e p r i va te s e c to r, g ove r n m e nta l b o d i e s , p o l i t i c a l g ro u p s , t ra d e

The Foundation ser ves the South African public’s

u n i o n s , yo u t h , v u l n e ra b l e m i n o r i t i e s , c i v i l s o c i et y,

interests by facilitating sustainable access to the

a n d t h e p u b l i c – c e m e nt i n g t h e i d e a t h a t S o u t h

e conomy for the b eneficiaries. We work to pursu e the

A f r i c a , a n d A f r i c a , n e e d b et te r c o o p e ra t i o n a n d

Foundation’s obje ctive to provide monetar y and non -

i nte r- d i s c i p l i n a r y d i a l o g u e b et w e e n a l l to b e s t ta c k l e

monetar y socio - e conomic development contributions

global challenges.

by under taking public b enefit activities within the Republic of South Africa. These activities ser ve to

The D rakensb erg Inclusive Grow th Forum is one of our

promote re conciliation, mutual respe ct and tolerance

contributions to socio - e conomic development in

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South Africa by building a share d future towards

we are also opening a maths, science, coding and music

prosperit y for all.

academy for high -school learners in Giyani, Limpopo.

H ow i m p o r ta nt i s t h e r o l e o f e d u c a t i o n i n r e d u c i n g

H ow i m p o r ta nt i s d i a l o g u e a m o n g e q u a l s?

t h e G i n i c o e f f i c i e nt i n S o u t h A f r i c a? We a re g i ve n su c h a s h o r t t i m e i n t h i s wo r l d – we Ed u c a t i o n i s t h e b e s t e q u a l i s e r. I t i s a key p i l l a r i n o u r

s h o u l d m a ke t h e m o s t o f to d a y a n d e m b ra c e t h e

F o u n d a t i o n, a n d we p l a c e t h e we l l - b e i n g o f o u r n a t i o n

d i f fe re nt o p p o r t u n i t i e s we h a ve i n t h e p re s e nt to

a t t h e h e a r t o f o u r wo r k w i t h t h e b e l i e f t h a t e q u i p p i n g

e n g a g e w i t h p e o p l e f ro m a l l wa l ks o f l i fe.

l e a r n e r s w i t h 21s t - c e nt u r y s k i l l s w i l l h e l p p re p a re S o u t h Af r i c a fo r t h e F o u r t h I n d u s t r i a l R evo l u t i o n a n d

P l a t fo r m s su c h a s To p E m p owe r m e nt a n d t h e

l a y t h e f u n d a m e nta l b u i l d i n g b l o c ks to c re a t i n g a n

D ra ke n s b e rg I n c l u s i ve G row t h F o r u m o f fe r u s t h i s

i n c l u s i ve so c i et y.

u n i q u e c h a n c e to m e et, n et wo r k , c o nve r s e a n d exc h a n g e u n d e r o n e ro o f w i t h m a ny p e o p l e f ro m

We a re i nve s te d i n, a n d c o m m i t te d to, c re a t i n g a n

a b ro a d s p e ct r u m o f so c i et y.

e nv i ro n m e nt t h a t b o o s t s a c c e s s to te c h n o l o g y a n d d r i ve s d i g i ta l l i te ra cy – t h e s e a re t h e key s to u n l o c k i n g

B y e m b ra c i n g t h e s p i r i t o f o u r F o u n d a t i o n’s m ot to

t h e p ote nt i a l fo r o u r yo u t h to c re a te a p o s i t i ve,

“ D i a l o g u e A m o n g Eq u a l s”, we h o p e to e n c o u ra g e

c o n n e cte d a n d i n c l u s i ve f u t u re i n t h e d i g i ta l a g e.

p e o p l e to p a r t i c i p a te i n a n d c o nt r i b u te to m a ny d i a l o g u e s e s s i o n s a t t h e su p p e r ta b l e, i n t h e wo r k

Our education programmes include “AI in Africa”, a

p l a c e, b et we e n c o m m u n i t i e s, a m o n g d i f fe re nt c re e d s,

girls - only educational bootcamp that addresses the

c u l t u re s a n d o rg a n i s a t i o n s.

systematic exclusion of youth in a variet y of 21st- centur y careers. It is a power ful plat form for girls to acquire

I am honoured to engage in dialogue with a range of

new tools and knowledge, and improve their prospects

people from all sectors of societ y on a regular basis and

at female digital inclusion. This nationwide initiative

I encourage all South Africans to par ticipate in impor tant

teaches youth the concepts and ethics of digital

discussions on the multitude of plat forms available,

technology and how to apply technology to their

including social media and informal set tings, so that we

daily lives to create solutions for their communities.

may continue our journey towards realising equitable

In par tnership with the Malungani Family and Peu Group,

transformation for all.

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20/20 INSIGHT

CREATING JOBS THROUGH SME GROWTH

Project5 0 (P t y) Ltd is a division of 20/20 Insight, along with the 20/20 Development Trust which provides development funding to SMEs. 20/20 Insight integrates elements of South Africa’s development ecosystem for improved impact, through cost- ef fective innovative solutions to key stakeholders. Project5 0 is based on one key principle: No one can do it alone. Most entrepreneurs, even those with great potential, struggle to grow their businesses because they are tr ying to do it all. Entrepreneurs carr y the responsibilit y of job creation in South Africa and we all need to rally behind them to help them succeed. Project5 0 brings together various resources to suppor t high - potential entrepreneurs in their quest to grow their businesses. Project5 0 is 20/20 Insight ’s flagship development

TH

programme aimed at creating over 50 0 jobs through growing high - potential SMEs to turnovers exceeding R50 - million. Project5 0 is designed to identif y high - potential SMEs and provide them with suppor t in preparation for becoming large corporate entities.

THROUG H SM E GROW TH

ADVISORY BOARDS

We allocate advisor y boards to each SME. The boards are led by retired corporate executives who act as executive mentors guiding the entrepreneur through the formulation and implementation of their grow th strategies. This helps the entrepreneurs to avoid some of the basic pit falls in the entrepreneurial journey and be guided to untangle themselves should they falter.

Funding is provided to par ticipating SME beneficiaries through the 20/20 Development

FUNDING

NTRODUCTION

Trust which works with sponsors, development finance institutions and par tner banks to provide development financing.

Project50 works with reputable business schools and other educational institutions

SKILLS DEVELOPMENT

20

to register par ticipating entrepreneurs in courses that will equip them with sound theoretical background on business strategy and growing a business into a corporate entit y.

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20/20 INSIGHT ADVERTORIAL

VALUE TO SMES • Access to affordable funding • Entrepreneur development • Development of competitive growth strategies • Re - evaluation and redesigning of business model • Strategy implementation support

CORPORATE ESD VALUE • Compliance with ESD codes and bonus points (job creation, designated groups) • Expanded ESD budget through external funding • High impact ESD programme with clear success measures • Reduced risk and cost in Project5 0 consolidates the fragmented resources in South Africa’s development

preferential procurement

ecosystem and ef fectively increases the oppor tunit y for SMEs to grow and create

• Reduced dependency of

sustainable jobs.

beneficiary SMEs on corporate supply chain

PROGR AMME OVERVIEW The Project50 consists of three 3 - year programmes, each providing development suppor t appropriate to the business operations before moving on to the nex t phase. An SME can enter the programme at any of the three phases depending

BANKS, DFIS AND ESD FUNDS • Reduced risk in SME financing

on its status upon registration.

SOCIAL VALUE

PRIMARY TARGET AND PROGR AMME OUTLINE PER PHASE

• Economic growth and Job creation • Reduce SME failure rate • Reduce waste in SME development resources

Contact: Finch House Rivonia Gardens Office Park 33 Wessels Rd, Edenburg 2128 T: +27 (0) 11 234 8998 F: +27 (0) 86 516 5295 email: Project50@2020insight.co.za

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By Ryland Fisher

Zo d wa N t u l i , h e a d o f t h e B - B B E E C o m m i s s i o n , s p e a ks about the challenges of making companies comply with t ra n s fo r m a t i o n l e g i s l a t i o n.

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Z O D WA N T U L I I N T E R V I E W

More than 80% of the complaints received by the Broad-Based Black Economic Empowerment Commission (B-BBEE Commission) relate to fronting, which is a major concern, says the head of the commission, Zodwa Ntuli. Interviewed at her office in Centurion, she said that fronting was the reason why the BEE legislation was amended in 2013 – leading to the formation of the commission – and it remains a serious challenge in South Africa. The sectors where they receive most complaints about non-compliant companies are construction, transport, mining, engineering and ICT – and most of these relate to fronting. “It is going to take not only the commission’s oversight, but also the governance committees of various companies to scrutinise their own BEE deals to make sure that those are not fronting deals,” she said. “We are really concerned about that. We cannot do anything about what happened in the past, but we should be able to deal with it going forward. Cooperation between the government, private sector and regulator is going to be very important.” The government’s inability to deal with fronting was one of the main reasons the BEE Act, passed in 2003, was amended in 2013. “After a decade of implementation, the then Department of Trade and Industry (dti) conducted a review of how we were doing in terms of that legislation and how it had been applied and operated. The review identified a number of gaps, key to this being the lack of monitoring of how it was implemented,” said Ntuli. “Arising from the lack of monitoring was the scourge of fronting that was taking place in the country, which could not be dealt with because there was not a mechanism in the 2003 legislation to deal with it.

“This is why Parliament passed amendments to the Act, to deal with the gaps identified by the review. Part of that was the creation of the B-BBEE Commission as the regulator to monitor and ensure that the legislation is implemented properly.” The commission was not set up immediately. It was only established in 2016 and is still in the process of establishment. “Among the amendments to the BEE Act in 2013 was the provision to criminalise fronting as a practise which undermined what the empowerment legislation was intended to achieve,” said Ntuli. “Fronting is not only misrepresenting your B-BBEE status as a company, but also a criminal offence. If you say you have black ownership and you do not have it, it is a criminal offence. If you submit a B-BBEE certificate to an organ of state for tenders or bid concessions and that certificate sells you as an empowered company when that is not the case, it is a criminal offence.” Asked if anyone has been convicted for fronting, Ntuli said there were processes in terms of which they assess compliance. “There are still many companies that are not complying. Our first strategy is to drive compliance. We encourage companies to understand the requirements and to formulate B-BBEE schemes and initiatives that comply and achieve the objectives of the Act. “In this case, the Commission is an adviser to the companies, helping them do the right thing. We also advise people who are supposedly beneficiaries of the B-BBEE legislation. “We assist companies or any person that needs advice relating to BEE. You can send us a written request to clarify any aspect of the B-BBEE legislation and we will clarify it for you.

“Where companies are not sure whether upcoming transactions are BEE-compliant or not, we provide advisory opinions. They can present that transaction to us in detail and we will analyse it to check whether it is compliant or not. If there are areas they need to remedy, we can advise them how to correct that. “We also provide information sessions to anybody who makes a request. We do this for boards of companies, the public and government departments, so that we can make sure that there is more awareness of what is expected in terms of the B-BBEE legislation. “Through our compliance-driven strategy, we expect to reduce the level of fronting because we expect all transactions that are being concluded to be compliant so that at the end of the day, we will get real value in the hands of black people.” But the Commission also has a corrective enforcement strategy. “Where there are deals that have already been concluded and do not comply with the Act, if there is a complaint, we will investigate it. If we believe a deal can be remedied, we will make recommendations on how it can be corrected. “We will put timelines to it and the parties involved will monitor them and, where they do not comply with those remedial recommendations, we have no choice but to refer them for prosecution. “There are many transactions that happened before the legislation was amended, but those transactions are still running. We are more likely to recommend that they be corrected if we find that there was something wrong with them. If they are not corrected, we will prosecute. “However, for new transactions, people know that fronting is a criminal

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“The will to do the right thing is beginning to be entrenched in how companies are doing business” offence and are aware of what needs to happen. Where there is blatant criminality, we refer those cases for criminal prosecution to the SAPS and the National Prosecuting Authority.

codes. For instance, the financial services sector codes or the tourism codes will have additional things that they will measure with regards to the entities in that space.

“Once the findings are made, the deal would either be a fronting deal or a misrepresentation or just general noncompliance, depending on the merits of the case.

“Once we have referred it for criminal prosecution, it is out of our hands. We are not criminal investigators. The legislation gives us powers to do general oversight on what is happening with regards to BEE and to ensure that the legislation is adhered to.”

“After receiving that information, we give the companies feedback on their B-BBEE performance, but we can also conduct site visits if we doubt the report submitted, so that we can verify if the report is legitimate.

“Those are the critical changes that came in 2013 with the amendments, but they are forward-looking in terms of what we did not have as a country before and what we would like to see going forward.”

“At the end of the year, the Commission is required to produce a report which tells the country, based on the reports submitted and information contained in B-BBEE certificates, how we are doing as a country with regards to B-BBEE. We released our first report in August 2018.

One of the problem areas identified by the Commission was to strike a balance between enforcement and creating awareness.

Ntuli said that the Commission does daily media monitoring to check on BEE deals and would sometimes call companies to bring the deal to the Commission to look at. But the Commission also receives complaints and makes findings and recommendations. “Most people come to us directly, others come through their lawyers, but any person can lodge a complaint if they suspect fronting or a misrepresentation of their B-BBEE status or general noncompliance with the B-BBEE Act. “The Commission will look at the merit of every complaint and once we have investigated, we will issue our findings. Our findings are supposed to be published in the normal course.” The Commission is also supposed to receive annual reports on empowerment from JSE-listed companies, all organs of state and public entities. “In these reports, these entities are supposed to tell the Commission how they are doing in terms of compliance with B-BBEE legislation. They must measure all the elements, such as ownership, management control, skills development, enterprise and supplier development, socio-economic development, and the additional elements that are unique to the sector

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“The Commission also has to ensure that there is greater transparency with regards to BEE deals. “In the 2013 legislation there was an amendment to create transparency. Every BEE transaction of R25-million or more must be filed with the commission of which we will keep a register. “That requirement started to take effect in June 2017. Every BEE ownership transaction of R25-million and above must be reported to us. We look at whether it complies with the requirements and register it. “If we pick up things that are not compliant, we are required to notify the companies and give them feedback on what we are concerned about. We give them time to remedy that and, if they fail to do so, we launch an investigation where we make findings on whether we feel the deal is compliant or not.

“Since our establishment, we have found that many people do not really know the requirements of BEE and rely heavily on consultants,” said Ntuli. “Our job is to make sure that we create enough awareness to ensure that people are aware of the requirements, so that when you enforce, you do so with confidence. There are instances when you pick up that a situation is capable of being remedied, and then you can remedy that. But where there is clear and blatant criminality, we are not lenient. We refer those to the criminal prosecuting authorities and criminal investigating processes immediately. “So far, our strategy is beginning to show some results. We are receiving increasing requests for advice, proactively from companies, and companies are also beginning to become more transparent about what they are planning to do. “Companies are now coming to us to check their deals before they announce them, to ask whether we think this deal is compliant.

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Z O D WA N T U L I I N T E R V I E W

“That is positive because it means that the will to do the right thing is beginning to be entrenched in how companies are doing business. This is the main thing for us, because if you want to do the right thing, you will come for advice. If you do not want to do the right thing, you will cut corners, hoping that we will not find you. But if we do find you, obviously we will not be lenient towards you. “The services are here and they are free. If you implement a deal that is noncompliant, it is because you wanted to.” Ntuli said that, while the Commission was not opposed to the use of consultants, there have been instances of companies being misled by consultants. “Consultants have a role to play because they do advise companies. They have a much closer understanding of the company’s vision, so they would be able to provide advice. “We have a problem with consultants who give advice that helps the company to circumvent. When we pick up those influences, while we are investigating the company, we also will investigate the consultant. If we make our findings, we will also make them in respect of that consultant, because companies pay for these services. The last thing anybody expects is for a consultant to mislead a company and to aid it to flout the law. We really have a very strong opposition towards those kinds of consultants. “What encourages us is that a lot of our clarification requests are coming from consultants. They send us requests to clarify certain things. If they are not sure when they are advising their clients, they come to us. “If you are a consultant, don’t try to become the ultimate interpreter of the B-BBEE legislation. That is the job of the Commission. If you are not clear about something, consult the Commission. We’ll

tell you what the interpretation is on that. If you do not agree with our interpretation, then you can approach the courts to give you an interpretation that will resonate with what you would like to see. “We do not have a problem with consultants, but we do have a problem with those consultants who are selling models that are creating fictitious BEE schemes. “Some consultants are advising companies to create employee schemes that are fictitious. Recently we have seen many companies who have been advised to create a not-for-profit organisation as a holder of the shares in the company and the company would have some beneficiaries that are supposedly black, somewhere. When you look closer, absolutely nothing has changed in the structure of the company and the not-for-profit organisation does not even play a role in the company. “There is also the relationship between consultants and verification agencies. Some consultants position themselves as intermediaries between verification agencies and measured entities. Often, the verification agent relies on information submitted by the consultant without verifying it. That is contrary to the rules of verification. A verification agent must verify itself that what the company is claiming is happening, and you cannot do that by just dealing with the intermediary. You need to deal with the company itself. You must conduct interviews. If this does not happen, the B-BBEE levels and the points allocated in the certificate are not worth the paper they are written on, because they are just based on what the consultant has provided, without verification.” “Through our compliance-driven strategy, we expect to reduce the level of fronting” Last year, the commission made two findings against verification agents

SAB&T and BEE Matrix, who were issuing certificates without following the verification process. They had to refund companies to which they issued certificates and, in the case of BEE Matrix, had to undertake not to do any verification for five years. “The verification agent is like an auditor in a company. When you are not able to trust the verification process, then everything is completely out of order. We should be able to bring that level of trust and the independence into the verification process. People should not think it is okay for a company to shop around for a level. You can’t say I want Level 2 and then you go to a verifier that will give you a Level 2. If all verification agencies are applying the rules as they should, then the outcome of what is presented and verified should be the same because you are following the right process.” Ntuli said the commission was still struggling to get the buy-in of private companies and government departments, but she was hopeful because they have only been operating for the past two years. “There are more than 400 JSE-listed companies, but only 121 reported for the financial year 2017. We only received four reports from more than 700 government departments and organs of state. The SETAs are required to report on an annual basis and we did not even receive a single report from them. It would seem that government and the private sector are not taking B-BBEE seriously.” “The state-owned entities (SOEs) and the government departments are supposed to be very tight on the requirements and not award contracts to companies that are not compliant. A number of state entities and government departments are still awarding contracts to companies that have a non-compliant BEE status.”

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ADVERTORIAL SA HOMELOANS

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su p p o r t i n g e nt re p re n e u r s; t h e

i s a s d i ve r s e a s t h e b i g b a n ks

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by p rov i d i n g m u c h - n e e d e d

l o a n s, sw i tc h h o m e l o a n s a n d

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Af r i c a n m a r ket, h a v i n g c re a te d 15

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c h a n g i n g eve n m o re l i ve s i n t h e

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n ex t 2 0 ye a r s to c o m e.

best in home loans by consumers in

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c o m p a ny, SA H o m e Lo a n s ta ke s p r i d e i n i t s t ra n s fo r m a t i o n

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a c h i eve m e nt s fo l l ow i n g m a ny

to S o u t h Af r i c a n h o m e ow n e r s i n

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to d a y a p rove n e nt re p re n e u r i a l

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d e m o g ra p h i c s h a ve c h a n g e d

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i n d i re ct jo b s. B e i n g a n o n - b a n k

g e n e ra te d by SA H o m e Lo a n s i s

p rov i d e s SA H o m e Lo a n s w i t h a

p ro o f o f t h e va l u e t h a t c a n b e

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NAIDU CONSULTING PROFILE

NAIDU CONSULTING About Naidu Consulting Naidu Consulting is a Level 1 B-BBEE, ISO accredited (ISO 9001; 14001 & OHSAS 18001) South African professional services provider established in 1999 to provide consulting engineering services. We are consistently an award winning firm that offers and delivers a comprehensive range of high quality, skilled professional services in the transportation, water and sanitation, structures and economic development sectors with diverse offerings within each sector. Our team, comprising more than 180 people, more than 60% of whom are youth, includes highly qualified, professionally registered, skilled and experienced engineers, technologists, technicians, project managers, quantity surveyors and construction managers. We utilise leading technology, hardware and software across our service offerings. Vision To be a leading provider of quality, economic and innovative engineering solutions that will be renowned for social and environmental awareness. COMPANY INFORMATION

Mission To provide professional engineering services promptly and efficiently – always mindful of our clients, stakeholders and community needs.

Year founded: 1999 Founding members: Selvan Naidu and Jennifer Naidu Number of employees: 180 Number and location of branches: 3 Branches: Durban; Pretoria and East London BEE Scorecard BEE contributor level: Level 1 BEE procurement recognition level: 135% Expenditure on staf f skills development as a propor tion of total payroll: 16% Total procurement sourced from black- owned and - empowered enterprises as a propor tion of the total procurement spend: 28% ≼51% black ownership: YES Black ownership: 10 0% Black woman ownership: 32%

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By Fiona Wakelin

In the year 20 0 0, following a discussion with then - MP Cyril Ramaphosa on the impor tance of a publication to champion B - BBEE, the first volume of Impumelelo was published, focusing on South Africa’s Top 30 0 black- empowered companies. Richard Fletcher, the founder of Topco Media, was still at the helm, and in his let ter of thanks in the upfront section of the first edition, he identified the purpose of the magazine – which still holds true today:

I m p u m e l e l o h a s b e e n d e s i g n e d to i d e nti f y a n d re c o g n i s e exc e l l e n c e a m o n g b l a c k c o m p a n i e s a n d e ntre p re n e u rs i n S outh Afri c a. Tu r n t h re e p a g e s a n d t h e re o n a d o u b l e p a g e s p re a d a re m e s s a g e s o f su p p o r t f ro m M a d i b a a n d n ow - P re s i d e nt R a m a p h o s a:

Th e a rriva l o f a l o n g d re a m e d - o f d e m o c ra cy h a s g ive n u s th e c h a n c e to b u i l d a S outh Afri c a n n ati o n. Th e raw m ate ri a l s o f fre e d o m, ju sti c e, a n d e q u a l it y b e fo re th e l aw, h ave b e c o m e p a r t o f th e fa b ri c o f ou r l ive s. Fo r S outh Afri c a n s, th i s i s, a n d wi l l re m a i n a lways, a m o m e nt o f p ro fou n d i m p o r ta n c e i n ou r l ive s. Am o n g a l l th e n ew o p p o r tu n iti e s, wh i c h a re now o f fe re d to th e p revi ou s ly d i s e n fra n c h i s e d m a jo rit y o f ou r c ou ntr y i s th e fre e d o m to e nte r i nto b u s i n e s s a n d e ntre p re n e u ri a l e nte rp ri s e s, to exp re s s n ew i d e a s, e n e rgy a n d a m b iti o n. A ri s i n g g e n e rati o n o f b l a c k b u s i n e s s m e n a n d wo m e n i s e nte ri n g th e m a rketp l a c e, b oth i n th e i r own c o m p a n i e s a n d a s m e m b e rs o f th e m o re p ro g re s s ive wh ite o rg a n i s ati o n s. Th ey a re s et ti n g out to c re ate a n ew b u s i n e s s wo rl d, o n e b oth n ati o n a l a n d i nte rn ati o n a l i n its s c o p e. Th ey h ave th e fre e d o m now to a c h i eve ‘ I m p u m e l e l o’, wh i c h i s th e i s iXh o s a wo rd fo r ‘ su c c e s s’, a n d th e su bje ct o f th i s p u b l i c ati o n. – Nelson Mandela

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TA K I N G T H E T E M P E R AT U R E O F T R A N S F O R M AT I O N I N S O U T H A F R I C A E D I T O R I A L

“For 19 years Impumelelo has tracked the changes, possibilities, growth,challenges and successes of transformation in South Africa”

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F o r 19 ye a r s I m p u m e l e l o To p Em p owe rm e nt h a s

T H E E C O N O M Y – G D P G R OW T H S I N C E 19 94

t ra c ke d t h e c h a n g e s, p o s s i b i l i t i e s, g row t h, c h a l l e n g e s

The South African economy expanded 1.1% year- on -

a n d su c c e s s e s o f t ra n s fo r m a t i o n i n S o u t h Af r i c a – a n d

year in the four th quar ter of 2018, af ter an upwardly

w h i l e t h i s i s a jo u r n ey w i t h a l o n g wa y to g o, we h a ve

revised 1.3% grow th in the prior period while markets

m a d e s i g n i f i c a nt s t r i d e s s i n c e 19 94.

had expected it to advance 0.6%. Slower grow th was seen in internal trade, utilities and public administration

I n 2 0 0 3, t h e B ro a d - B a s e d B l a c k Ec o n o m i c

while the agricultural sector shrank. In 2018, the GDP

Em p owe r m e nt (B - B B EE) s t ra te g y wa s p u b l i s h e d a s

advanced 0.8%, below an upwardly revised 1.4% in 2017.

a p re c u r so r to t h e B - B B EE Act, N o. 5 3 o f 2 0 0 3.T h i s

GDP Annual Grow th Rate in South Africa averaged 2.76%

g ro u n d b re a k i n g p i e c e o f l e g i s l a t i o n wa s fo l l owe d by

from 1994 until 2018, reaching an all time high of 7.10%

t h e 2 013 B - B B EE A m e n d m e nt Act Act N o. 4 6 o f 2 013.

in the four th quar ter of 20 06 and a record low of -2.60% in the second quar ter of 20 09. - Trading Economics

The fundamental objective of the Act was to advance economic transformation and enhance economic

T h e su m m a r y b e l ow s h ows t h e tota l wo r t h o f e a c h

participation of previously disadvantaged people in the South

i n d u s t r y a s we l l a s i t s ove ra l l c o nt r i b u t i o n to t h e tota l

African economy. In this article we take the temperature of

e c o n o m i c va l u e o f S o u t h Af r i c a fo r 2 018. I t i s ra n ke d

transformation of a number of key sectors in the country.

f ro m b i g g e s t to s m a l l e s t.

T H E E C O N O M Y – G D P G R OW T H S I N C E 19 94 R 6 4 0 3 6 8 228 613

22. 39 %

R478 69 2 5 3 8 116

16.74%

R4 31 6 6 8 773 614

15.10 %

R 3 8 6 8 8 3 873 8 0 5

13. 5 3%

R 273 19 2 5 5 6 98 3

9. 5 5%

R 273 19 2 5 5 6 98 3

8.0 6%

R170 5 3 0 3 4 0 0 5 8

5.96%

R170 5 3 0 3 4 0 0 5 8

3.77%

R74 157 4 3 3 15 6

2. 59 % 2. 31%

R 6 5 931 79 2 241 E l e c t r i c i t y, gas and wa te r

A g r i c u l t u re, fo re s t r y a n d fishing

Construction

Personal services

Mining and quarrying

Tra n s p o r t, s to ra g e a n d communication

M a n u fa c t u r i n g

Trade, catering and accommodation

G e n e ra l g ove r n m e nt services

F i n a n c e, re a l e s ta te and business services

0

G OV E R N M E N T S P E N D I N G I N 2 019/2 0 15. 2 %

R 278. 4 b n R 262. 4 b n

14. 4%

R 222.6 b n

12. 2 %

R 211.0 b n

11.6%

R 2 0 9. 2b n

11. 5%

R 2 0 8. 5 b n

11. 4%

R 2 0 2. 2b n

11.1%

R112.7b n

6. 2 % 0

Post school education a n d t ra i n i n g

Debtservice costs

Community d eve l o p m e nt

Economic d eve l o p m e nt

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Peace and security

IMPUMELELO TOP EMPOWERMENT

Health

Basic education

Social d eve l o p m e nt

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TA K I N G T H E T E M P E R AT U R E O F T R A N S F O R M AT I O N I N S O U T H A F R I C A E D I T O R I A L

AG R I C U LT U R E T R A N S F O R M AT I O N AC R O S S S E CTO R S

T h e Af r i c a n F a r m e r s’ A s so c i a t i o n o f S o u t h Af r i c a (A FASA) h a s b e e n a t t h e fo re f ro nt o f p u s h i n g fo r t h e

MINING

t ra n s fo r m a t i o n o f t h e a g r i c u l t u re s e cto r a s p a r t a n d

M ining is an impor tant foreign - exchang e e arner,

p a rc e l o f t h e b ro a d e r a g ra r i a n re fo r m g ove r n m e nt

with gold accounting for more than one - third of

p o l i c i e s p ro m ote.

expor ts. South Africa is also a major producer of coal, manganese, chrome, platinum (world’s larg est

A FASA‘s s e c o n d Ag r i b u s i n e s s Tra n s fo r m a t i o n

producer), and diamonds (4th - larg est producer).

C o nfe re n c e, w h i c h to o k p l a c e i n 2 018 a n d fo c u s e d

The M ineral and Petroleum Resources D evelopment

o n va l u e c h a i n i nte g ra t i o n a n d fa r m i n g a s p a r t

Act (M PR DA) re quires the M inister of M ineral Resources

o f t h e F o u r t h I n d u s t r i a l R evo l u t i o n, su c c e e d e d i n

and Energy to set socio - e conomic targ ets through the

p ro m ot i n g s m a r t p a r t n e r s h i p s b et we e n i nve s to r s a n d

M ining Char ter.

l a n d ow n e r s a n d a m o n g s t fa r m e r s t h e m s e l ve s.

Ac c o rd i n g to t h e d ra f t M i n i n g Ch a r te r 2 018, a

I n 2 0 0 8 t h e Ag r i B EE Tra n s fo r m a t i o n Ch a r te r wa s

m i n i m u m o f 70 % o f tota l m i n i n g g o o d s p ro c u re m e nt

g a zet te d a n d i n 2 017 t h e A m e n d e d Ag r i B EE S e cto r

s p e n d m u s t b e o n S o u t h Af r i c a n - m a nu fa ct u re d

C o d e wa s p u b l i s h e d.

g o o d s a n d a p p o r t i o n e d a s fo l l ows: 21% f ro m b l a c k e nt re p re n e u r s, 5% o n b l a c k e c o n o m i c a l l y e m p owe re d

T h e o bj e c t i ve s o f t h i s A m e n d e d Ag r i B E E S e c to r

wo m e n e nt re p re n e u r s a n d 4 4% f ro m b l a c k e c o n o m i c

C o d e a r e to fa c i l i ta te B - B B E E i n t h e s e c to r by

e m p owe r m e nt - c o m p l i a nt c o m p a n i e s.

i m p l e m e nt i n g i n i t i a t i ve s to i n c l u d e b l a c k S o u t h A f r i c a n s a t a l l l eve l s o f a g r i c u l t u r a l a c t i v i t y a n d

In the case of ser vices, the draf t Char ter states that a

e nte r p r i s e s by :

minimum of 80% of the total spend on ser vices (excluding

• P ro m ot i n g e q u i ta b l e a c c e s s a n d p a r t i c i p a t i o n i n

non - discretionar y expenditure) must be sourced from South African companies and appor tioned as follows: 60% on black economically empowered entrepreneurs, 10% on black economic empowerment women entrepreneurs and 10% on black economic empowerment- compliant companies. – Barrick Mining Review

t h e e nt i re a g r i c u l t u ra l va l u e c h a i n • D e - ra c i a l i s i n g l a n d a n d e nte r p r i s e ow n e r s h i p, c o nt ro l, s k i l l e d o c c u p a t i o n s a n d m a n a g e m e nt o f ex i s t i n g a n d n ew a g r i c u l t u ra l e nte r p r i s e s • U nlocking the full entrepreneurial skills and potential of previously disadvantag e d individuals

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• F acilitating structural changes in agricultural support systems and development initiatives to assist black South Africans in owning, establishing, participating in and running agricultural enterprises • S o c i a l u p l i f t m e nt • Increasing the extent to which communities, workers, cooperatives and other collective enterprises own and manage existing and new agricultural enterprises, increasing their access to economic activities, infrastructure and skills training. M A N U FACT U R I N G The manufacturing sector accounts for 13% of GDP (global average is 18%)

“Africa’s greatest wealth has been seen to be its natural resources”

and approximately a third of this contribution comes from the automotive sub sector – which as a whole contributes in the region of 7% to GDP. Automotive manufacturing takes place in three provinces: Gauteng (Nissan - Renault, BMW

provide valuable structures to

and Ford); KwaZulu - Natal ( Toyota, Bell Equipment); and the Eastern Cape

suppor t these objectives.

( Volkswagen, Mercedes - Benz, General Motors and Ford engines). M a n u fa ctu ri n g th e fu tu re Suppor t and incentives from the state for the automotive industr y include the

Traditionally Africa’s greatest

Automotive Production and Development Plan (APDP) and the associated

wealth has been seen to be its

Automotive Incentive Scheme (AIS). This policy suppor t has resulted in

natural resources and primary

sustained investor confidence.

sector extraction, relying on other developed economies for

The South African Automotive M aster plan (SA AM) is a roadmap to 20 35 with

secondary beneficiation and

targ ets that include expande d vehicle production, doubling employment,

imports. Now we stand on the

an incre ase in local content to 6 0 % , and an incre ase in the contribution of

brink of a major disruption to

black- owne d suppliers.

this paradigm. Digitisation will transform the continent’s economy

There are several industr y- led initiatives aimed at facilitating suppor t for existing

into one that is exports-based.

companies on this transformation and black supplier development journey. Incubator structures, private advisor y ser vices and cluster initiatives such as East

Data, connected infrastructure

Cape Automotive Industr y Forum (ECAIF) and Durban Automotive Cluster (DAC)

and industrial ecosystems will

32

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TA K I N G T H E T E M P E R AT U R E O F T R A N S F O R M AT I O N I N S O U T H A F R I C A E D I T O R I A L

Higher Education and Training (DHET). S k i l l s d eve l o p m e nt a n d vo c a t i o n a l t ra i n i n g h a s b e e n key to jo b c re a t i o n a n d re d u ct i o n o f p ove r t y. T h e fo c u s o f t h e S k i l l s D eve l o p m e nt Ac t, 19 9 8 (A m e n d e d 2 0 0 8) wa s to: • E m p owe r t h e S o u t h Af r i c a n wo r k fo rc e w i t h s k i l l s • E n su re e m p l oye e s a c c e s s m o re o p p o r t u n i t i e s fo r s k i l l a c q u i s i t i o n • C re a te s p a c e fo r t h e n ew e nt ra nt s to t h e l a b o u r m a r ket to g a i n together create the perfect storm for

educational and skills levels and

wo r k ex p e r i e n c e, i nt ro d u c e

Africa to manufacture smart factories

an education and training system

t ra n s fo r m a t i ve to o l s t h ro u g h

of the future.

that was fragmented, dysfunctional

t ra i n i n g a n d e d u c a t i o n to re d re s s

and unequal. From 1994 to 2009,

u nfa i r d i sc r i m i n a t i o n p ra ct i c e s i n

According to a Frost & Sullivan White

the Department of Education was

t h e l a b o u r m a r ket.

Paper by the Manufacturing Leadership

responsible for higher and technical

Council, the manufacturing industry

vocational education delivered

Fu r t h e r i n g t h e n a t i o n a l s k i l l s

through the universities and further

d eve l o p m e nt a n d t r a i n i n g

education and training (FET) colleges.

i m p e r a t i ve, D H E T p r e s e nte d t h e

will look completely different in the next 10 to 15 years as industries become high-tech engines of mass customisation.

N a t i o n a l S k i l l s D eve l o p m e nt P l a n The then Department of Labour

to t h e p o r t fo l i o c o m m i t te e o n

was responsible for workplace skills

higher education and training in

“Highly automate d and information -

programmes, delivered largely through

Au g u s t 2 018. T h e n i n e p r i n c i p l e s o f

intensive, the factor y of tomorrow

the Sector Education and Training

t h e P l a n we r e o u t l i n e d a s fo l l ow s:

will look like an inte grate d hardware

Authorities (SETAs). This split in the

1. L o c a t i n g t h e N S D P w i t h i n a n

and sof t ware system, fu elle d by

education, training and workplace

vast quantities of information from

skills production created difficulties

2 . C o nt r i b u t i n g to t h e c o u nt r y ’s

ever y corner of the enterprise and

in delivery and the education and

so c i o - e c o n o m i c o bj e ct i ve s

b eyond, moderate d by analy tical

training levels of the population did not

3. A d va n c i n g a n e q u i ta b l e

systems that can identif y and

improve much. The education, training

a n d i nte g ra te d sy s te m

ex tract insights and oppor tunities

and skills system was described as

from that information, and comprise

ineffective and inefficient.

i nte g ra te d p o s t - sc h o o l sy s te m

4 . G re a te r i n c l u s i v i t y a n d c o l l a b o ra t i o n

of intellig ent machines that le arn,

5. F o c u s o n su p p o r t sy s te m fo r

act and work alongside highly

In 2009 government created

skille d human b eings.” – Frost &

the single ministerial portfolio of

Sullivan White Paper

Higher Education and Training. The

l e a r n e r s a n d e m p l oye r s 6. S t ro n g e m p h a s i s o n a c c o u nta b i l i t y

portfolio shifted the higher and

7. U n d e r s ta n d i n g d e m a n d

TRAINING AND SKILLS

further education and training

8. S te e r i n g S u p p l y – Q u a l i f i c a t i o n s

D E V E LO P M E N T

functions associated with colleges

The 1994 democratic government

and universities from the Minister of

inherited a population with low

Education to the new Department of

a n d P rov i s i o n 9. S te e r i n g Fu n d i n g – Fu n d i n g

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Mechanisms

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FINANCE

The period since 1994 has seen the

targeted sectors of the economy.

Since 1994 financial services have seen

South African economy undergo

Recognising the unique position

strong growth and investors cite this

profound restructuring which has

that financial institutions hold in the

sector as one of the key motivations for

included policy initiatives such as

development of South Africa, two unique

investing in our economy. In the South

the Broad-Based Black Economic

elements exist in the FSC scorecard

African context, access to finance and

Empowerment Strategy, the

over and above the five elements in

financial services are key to achieving

Microeconomic Reform Strategy,

the Codes of Good Practice. These

economic and social transformation.

Transformation Charters, Sector

are: Empowerment Financing and

Codes, Codes of Best Practice, the

Access to Financial Services. These

Meaningful transformation of the

Black Industrialist Programme and the

elements are intended to accelerate the

financial sector includes issues such

Financial Sector Regulations Act (2017).

transformation process as they focus on

as access, lower rates, appropriate

making financial services accessible

product development, procurement,

“In 2017 the Financial Sector Code

to the previously unbanked and under-

empowerment financing,

was amended to ensure it was in

served. They empower the previously

socio - economic development,

line with the dti Codes of Good

disenfranchised through the provision of

employment equit y and skills

Practice. The year 2018 saw the

affordable housing, financing of black

development. True transformation

sector contribute R640 368 228 613

Small, Medium and Micro Enterprises

of the financial sector means that

to the gross domestic product of

(SMMEs) and agricultural activities,

it will work for all South Africans,

the economy (22.39%).

and investing in various types of

enabling all citizens to save, borrow, insure and transact.

transformational infrastructure that help The Financial Sector Code (FSC)

create the necessary platforms to grow

commits all participants to

the economy on an equitable basis.”

Structure of the South African

actively promoting a transformed,

– Government Gazette 1 December 2017

f i n a n c e s e c to r a r r a n g e d

vibrant and globally competitive

a c c o r d i n g to va l u e o f a s s et s:

financial sector that reflects the demographics of South

S ou rc e s B a rrick M i ni ng R eview

B a n ks

Africa, which contributes to the

Pe n s i o n f u n d s

establishment of an equitable

Frost & Su l l iva n White Pa p e r

Lo n g - te r m i n su re r s

society by providing accessible

Gove rnme nt Gazette

C o l l e ct i ve i nve s t m e nt sc h e m e s

financial services to black people

S tat sSA

S h o r t - te r m i n su re r s

and by directing investment into

34

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B rand SA

w w w.southa f ricanm i.co m

1 9 TH E D I T I O N

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TA K I N G T H E T E M P E R AT U R E O F T R A N S F O R M AT I O N I N S O U T H A F R I C A E D I T O R I A L

1997

Constitutional Cour t of South Africa a b o l i s h e s c a p i ta l p u n i s h m e nt i n t h e c a s e o f S v M a k wa nya n e a n d A n ot h e r

2000

Hansie Cronje, Herschelle Gibbs, Pieter Str ydom and Henr y Williams are accused by the New Delhi police of alleged match fixing

2001

S o u t h A f r i c a a n d I n d i a s i g n a d e c l a ra t i o n o f i nte nt o n c o - o p e ra t i o n i n h e a l t h a n d medicine

2004 The third democratic elections are held and won by the African National Congress

2008

N a t i o n a l i s t Pa r t y i n South Africa pulls out of the coalition g ove r n m e nt fo r m e d t wo ye a r s e a r l i e r, and the African N a t i o n a l C o n g re s s assumes full p o l i t i c a l c o nt ro l

2005

1994

South Africa holds its first f u l l y d e m o c ra t i c e l e ct i o n s and Nelson Mandela is swo r n i n a s f i r s t d e m o c ra t i c p re s i d e nt

The African National C o n g re s s re c a l l s P re s i d e nt T h a b o M b e k i a n d e l e ct s d e p u t y l e a d e r Kg a l e m a M ot l a nt h e to re p l a c e T h a b o M b e k i a s p re s i d e nt u nt i l A p r i l 2 0 0 9, w h e n n ew e l e ct i o n s w i l l b e h e l d

2009 National and p rov i n c i a l e l e ct i o n s a re h e l d. J a c o b Zu m a i s e l e cte d p re s i d e nt

2012 2013

P re s i d e nt N e l s o n Mandela calls on g ove r n m e nt a n d business leaders wo r l d w i d e to f i n d wa y s to p rov i d e a c c e s s to t re a t m e nt fo r p e o p l e l i v i n g w i t h H I V/A I D S

T h e Tr u t h a n d Reconciliation Commission re l e a s e s i t s f i n a l re p o r t

2006

2007 J a c o b Zu m a i s e l e cte d chairman of the African National C o n g re s s

Nelson Mandela i s a wa rd e d the Amnesty I nte r n a t i o n a l Ambassador of Conscience Awa rd

2010

South Africa hosts the FI FA Wo r l d Cu p

The 14th Dalai Lama is unable to attend the 80th birthday celebration of fellow Nobel Peace Prize laureate Desmond Tutu, having been refused a visa to enter South Africa

T h e 2 014 N a t i o n a l El e ct i o ns ta ke p l a c e a n d t h e Af r i c a n N a t i o n a l C o n g ress re m a i ns i n p owe r w i t h 249 se a t s i n Pa r l i a m e nt, w h i l e t h e D e m o c ra t i c A l l i a nc e w i ns 89, t h e Ec o n o m i c Fre e d o m Fi ghte rs 25

2016

and th e I nka tha Fre e d om Par t y 10. T h e re m aining 27 se a ts are fill e d by re p rese nta tives from nin e sm all e r p ar ti es. Final re p or t by Pub li c Prote ctor T huli M a d onse l a on R 24 6 0 0 0 0 0 0 of pub lic exp e nditure on Presi d e nt J acob Zuma’s private N kandl a resi d e nc e is re l e a se d M unicipal el e ctions – th e po litical par t y with th e majorit y in most municipaliti es is th e Af rican N ational C ongress, howeve r, th e D e m o c ra ti c A lli anc e g ains th e key m etros of J ohann esburg, Pretori a and Po r t Eliza b eth

Axing of Pravin Gordhan as finance minister, along with his deputy Mcebisi Jonas by President Jacob Zuma sees the rand plummet. The ANC’s 54th National Elective Conference — the country’s Deputy President Cyril Ramaphosa wins the party’s top spot in a hotly contested battle against Nkosazana Dlamini-Zuma 1 9 TH E D I T I O N

TOP EMPOWERMENT OFFICIAL MAGAZINE.indd 35

Thabo Mbeki becomes P re s i d e nt of South Africa

2014

President Nelson Mandela dies

The #FeesMustFall protests gain momentum countr y wide, culminating in a march of 5 0 0 0 students to Parliament President Zuma sacks t wo finance ministers in one week: Nhlanhla Nene was ousted and replaced by ANC back bencher Des van Rooyen, However, at the time, following corporate pressure, Van Rooyen was replaced within a week by Pravin Gordhan

20 02

1999

P re s i d e nt N e l s o n M a n d e l a c a l l s fo r a s u m m i t ove r t h e C o n g o c o n f l i ct

2017

2015

P o l i c e o p e n f i re o n a g ro u p o f s t r i k i n g M a r i ka n a miners, killing 3 4 a n d i nj u r i n g a p p rox i m a te l y 78

Jacob Zuma is relieved of his post as Deput y President of South Africa, following the verdict in Schabir Shaik ’s trial, and is to stand trial in 20 06

1998

C o n s t i t u t i o n o f S o u t h A f r i c a c o m e s i nto e f fe ct

2011

TIMELINE

2018 Cyril Ramaphosa is sworn in as President of South Africa

2019

ANC win general elections. President Ramaphosa implements Cabinet reshuf fle

IMPUMELELO TOP EMPOWERMENT

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2019/10/18 2:18 PM


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Impumelelo Top Empowerment 19th Edition (Preview)  

When you participate in Impumelelo, you join South Africa’s top empowerment leaders of business and industry in the country’s leading busine...

Impumelelo Top Empowerment 19th Edition (Preview)  

When you participate in Impumelelo, you join South Africa’s top empowerment leaders of business and industry in the country’s leading busine...